MoPSW looking VGF Scheme change to boost Coastal Shipping

NEW DELHI : The Shipping Ministry has identified a potential of 340 million tonnes of cargo movement by Coastal Shipping per annum. In a bid to promote Coastal Shipping, the Shipping Ministry has asked the Finance Ministry to consider changes in the Viability Gap Funding Scheme so that operationalexpenditure(opex) canbesupported.

“Under the present guidelines, VGF (viability gap funding) is offered for capital expenditure, but in our assessment, it is required for opex due to the multiplicity of handling points in Coastal Shipping,” an official said, adding that the Shipping Ministry has taken up the matter with the Finance Ministry. The official said the Ministry has sought changes in the VGF norms.